HHS awarded $13.17M for educational services, with a competitive delivery order

Contract Overview

Contract Amount: $13,173,885 ($13.2M)

Contractor: Educational Services, Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2008-04-30

Contract Duration: 1,689 days

Daily Burn Rate: $7.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.2 million to EDUCATIONAL SERVICES, INC for work described as: Key points: 1. The contract value of $13.17M over 1689 days suggests a moderate annual spend. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad scope of work. 3. A competitive delivery order implies multiple bidders vied for this specific task. 4. The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed carefully. 5. The contract was awarded by the Department of Health and Human Services (HHS). 6. The duration of nearly 5 years suggests a long-term need for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details. However, a $13.17M award over approximately 4.6 years averages around $2.86M annually. This figure needs to be compared against the typical cost of similar educational or professional services within the federal government and the private sector. The CPFF structure warrants scrutiny to ensure costs remained reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed among multiple potential offerors. The presence of 21 bids suggests a healthy level of competition for this specific task order. A higher number of bids generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The strong competition for this delivery order likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely the recipients of the educational services provided by EDUCATIONAL SERVICES, INC. The services delivered fall under 'All Other Professional, Scientific, and Technical Services,' suggesting a wide range of potential applications. The contract was awarded to a company located in Maryland (MD), indicating a potential geographic focus or presence. The contract may have implications for the workforce employed by EDUCATIONAL SERVICES, INC. and potentially for the broader professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type carries inherent risk of cost escalation if not closely monitored.
The broad NAICS code (541990) could mask inefficiencies or a lack of specific expertise if not well-defined.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services.

Positive Signals

Awarded through a competitive process with 21 bids, indicating strong market interest and potential for good value.
The long contract duration (1689 days) suggests a sustained need and potentially a successful track record for the contractor.
The fixed fee component of the CPFF contract provides some level of cost certainty.

Sector Analysis

The professional, scientific, and technical services sector is a significant part of federal contracting. NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' encompasses a diverse range of activities. Federal spending in this category is substantial, covering areas from research and development support to specialized consulting. This contract likely fits within a broader HHS initiative requiring specialized expertise not easily categorized under more specific service codes.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. The presence of 21 bids suggests that both large and small businesses may have participated in the competition. Further analysis would be needed to determine the extent of small business participation or subcontracting.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration. The effectiveness of oversight depends on the agency's internal controls, performance monitoring, and potentially audits. Transparency is generally facilitated by contract databases, but detailed performance reports are often not publicly available.

Related Government Programs

HHS Educational Support Contracts
Professional and Technical Services
Federal Training and Development Programs
Government-wide Acquisition Contracts (GWACs) for Services

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost overruns.
Broad NAICS code may indicate a need for clearer service definitions.
Lack of specific performance metrics hinders objective evaluation of value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.2 million to EDUCATIONAL SERVICES, INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is EDUCATIONAL SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2003-09-15. End: 2008-04-30.

What specific educational or technical services were provided under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests the services could range widely, potentially including training, research support, program evaluation, consulting, or other specialized technical assistance. Without more specific contract details or performance reports, the exact nature of the services remains undefined. However, given the awarding agency (HHS), the services might be related to public health education, healthcare professional development, or administrative support for HHS programs.

How does the $13.17M contract value compare to similar federal contracts for educational services?

Comparing the $13.17M contract value requires identifying truly comparable contracts. If this contract is for broad professional services under NAICS 541990, it represents a moderate-sized award over its nearly 5-year duration. Annualized, it's approximately $2.86M. Federal spending on educational and training services varies significantly based on scope, duration, and contractor. For instance, large-scale federal training initiatives or educational program management contracts can reach tens or hundreds of millions. This contract's value appears reasonable for a specific, competitively awarded task order within a larger agency framework, assuming the scope of work is well-defined and the services are essential.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost' portion is reimbursable. If the contractor's actual costs exceed estimates, the government bears that expense. This necessitates robust oversight and detailed cost tracking by the contracting agency to ensure that only allowable and reasonable costs are reimbursed. Inefficient performance or unforeseen challenges can inflate costs, making effective contract management crucial to prevent budget blowouts beyond the initial estimated cost.

What does the high number of bids (21) indicate about the market for these services?

A high number of bids, such as the 21 received for this contract, generally indicates a healthy and competitive market for the services being procured. It suggests that multiple companies possess the capability and interest to perform the work. This level of competition is beneficial for the government as it typically leads to better pricing, encourages innovation, and provides a wider pool of qualified contractors to choose from. It also implies that the contract requirements were likely well-defined and accessible to a broad range of potential offerors, rather than being overly restrictive.

How has federal spending in 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) trended over the past decade?

Federal spending within NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' has generally shown an upward trend over the past decade, reflecting the increasing reliance of government agencies on external expertise for specialized tasks. While specific figures fluctuate annually based on agency priorities and budget allocations, the overall demand for diverse professional and technical support services has remained strong. This category often captures a wide array of services that don't fit neatly into more specific NAICS codes, making it a significant area of federal procurement. Agencies like HHS, DOD, and various research institutions are major contributors to spending in this sector.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 21

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 1150 CONNECTICUT AVE NW, WASHINGTON, DC, 20036

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $32,465,492

Exercised Options: $15,686,163

Current Obligation: $13,173,885

Parent Contract

Parent Award PIID: 233030018

IDV Type: IDC

Timeline